According to a new report from Yardi Matrix -- in perpetually expensive Manhattan - residential rents are falling due to a rapid increase in rental development in 2018. With a new cycle peak for inventory, rents there, as in much of the nation, will likely maintain a trend of moderation.
With a multifamily pipeline of more than 10,000 units underway and an additional 27,000 in the planning and permitting stages, Manhattan is likely to maintain its fast-paced inventory expansion. "Multifamily is growing and evolving in submarkets such as Hells Kitchen, East Harlem, the Garment District and the Downtown, while an entire neighborhood is springing up in Hudson Yards. Meanwhile, rents in the Lifestyle segment continue to slide," said Paul Fiorilla, Editorial Director for Yardi Matrix.
Competition from new deliveries in the boroughs, especially Queens and Brooklyn, also contribute to Manhattan's flattening rent growth, he added. "As a result, while Manhattan is a dynamic market that remains in high demand as a place to live and do business, we expect rent growth to remain weak, even as the underlying economy and demand remain strong." Yardi Matrix projects that
On the heels of Amazon's surprise announcement to cancel its plan to build a new headquarters facility in New York's Long Island City due to Democratic political opposition, both the local real estate market and the Governor's office were stunned.
The Dow Jones Industrial Average finished 2018 down 3.5% and lost 13% of its value between October 2018 and December 2018 alone -- its worst annual performance since 2008. The downturn rippled through world equity markets.
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